As the school year comes to a close, recent graduates embark on new adventures in unfamiliar cities, venturing into fresh career opportunities. From adjusting to new surroundings to exploring diverse job markets, the change can be daunting yet exciting. To assist in this transition, we have compiled a list of the top markets for the class of 2024. Zillow’s ranking analyzed rent affordability, job opportunities and demographics in the 100 largest U.S. metro areas. 

1. Phoenix, Arizona 

• Typical Rent: $1,887
• Average Recent College Graduate Income: $65,608
• Share of Rental Listings on Zillow Offering a Concession: 50.5%

Phoenix has established itself as a thriving hub for the class of 2024, offering abundant job opportunities and a sizable population of similarly aged individuals. Phoenix claimed a top spot primarily due to its booming job market, ranking as the second-strongest among the markets analyzed by Zillow. Phoenix also ranked in the top 10 for the share of rental listings on Zillow that offer concessions, such as a free month of rent or free parking (50.5%). Those factors helped Phoenix overcome only middling affordability. A new grad can anticipate spending about 34.5% of their starting salary on a typical rental, which ranks outside of the top 60.  

2. Albuquerque, New Mexico

• Typical Rent: $1,583
• Average Recent College Graduate Income: $65,727
• Share of Estimated Entry-Level Income Spent on Rent: 28.9%

Also situated in a desert climate, approximately 400 miles east of Phoenix, lies Zillow’s second-best market for college graduates, Albuquerque. The estimated entry-level income closely mirrors that of Phoenix, but typical rent costs are lower by more than $300, helping ease the rent burden for new grads. Although the twenty-something population is not as large as other markets on this list, a strong job market pushes Albuquerque near the top of the list.  

3. Colorado Springs, Colorado

• Typical Rent: $1,858
• Share of Estimated Entry-Level Income Spent on Rent: 32.9%
• Share of Population Age 21-29: 13.9%

Having claimed the title of last year’s top market for college graduates, Colorado Springs is no stranger to being a premier location for young, up-and-coming professionals. The typical graduate can expect to make nearly $68,000 annually and pay $1,858 in rent. Although rent costs consume over one-third of the annual income, Colorado Springs ranked in the top 10 for the share of individuals in their 20s, offering an ideal backdrop for forging connections and possibly finding roommates to conquer housing costs with. 

4. San Antonio, Texas 

• Typical Rent: $1,477
• Average Recent College Graduate Income: $61,643
• Share of Population Age 21-29: 12.9%

Zillow’s fourth-best market for college graduates is San Antonio. San Antonio boasts the most affordable rent among the top five markets, allowing graduates to dedicate only 28.8% of their income to housing expenses. In addition to its affordability, 48% of rental listings on Zillow in San Antonio offer concessions.

5. Portland, Oregon

• Typical Rent: $1,830
• Share of Estimated Entry-Level Income Spent on Rent: 29.0%
• Share of Rental Listings on Zillow Offering a Concession: 39.3%

Portland, the most populous city in Oregon, is ranked as the fifth-best market for recent college graduates. Although the entry-level job market in Portland is less robust than other cities, those who secure a job can expect an annual income of nearly $76,000, the highest estimated starting salary among the top five. Recent graduates can anticipate dedicating less than 30% of their income towards rent, reflecting a financially sustainable housing burden. 

Methodology

Zillow’s ranking of the best markets for recent college graduates is based on five factors: 

• Rent affordability: Determined by using each metro area’s typical rent according to the Zillow Observed Rent Index (ZORI) and an estimate of recent college graduate wages, this represents the share of income a recent college graduate can expect to spend on a new rental.
• Rent concessions: The share of rental listings on Zillow in each metro area that offered at least one concession, such as a free month’s rent or free parking, as of April 2024.

• Recent graduate incomes: Derived using the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics, Zillow analyzed jobs that require a bachelor’s degree but no prior experience and took the 25th percentile of wages weighted by the employment of those jobs in the geographic area.

• Job openings: The percentage change in seasonally adjusted postings since February 1, 2020 for total job postings in U.S. metro areas with a population of at least 500,000 people. Data is provided by the Indeed Hiring Lab.

• Share of 20-something residents: The share of the population ages 21-29, according to the 1-year American Community Survey.